Monster Energy continues to inch closer to the boozy, bubbly waters of hard seltzer. The energy drinks giant has applied to register two new trademarks: “Hydra Hard Seltzer” and “Trident Hard Seltzer,” Hard Seltzer News has learned.

Imminent Launch Announcement

It is clear that a Monster Beverage Corp (NASDAQ: MNST) announcement is imminent, as the trademarks continue to pile up. The energy drink producer filed an application for “Stripped Malt” in November, as well as “True North,” “Pure North,” and “Real North” in June of 2020.

Additional details beyond the legal filings have been scant from the company. CEO Rodney Sacks confirmed in an August earnings call that the brand was exploring harder options. “We’re looking at developing some products in both nonalcoholic and alcoholic spaces,” Sacks recently divulged to investors on a call discussing the company’s earnings.

There has been no word yet on whether the new spiked and sparkling water will contain caffeine, although Sacks has hinted that the company is not looking at a heavily caffeinated beverage, ala Sparks or Four Loko.

Monster currently makes “Hydro,” a non-carbonated energy drink.  Hydro Super Sport, released in July 2020, is lightly sweetened, caffeinated beverage available in two flavors, Blue Streak and Red Dawg.

Hard Seltzer Category Still Has Room for More

Given the popularity of Monster Energy, Hydra and Trident could significantly disrupt the hard seltzer category. As one of the highest selling energy drinks on the market, analysts estimate that a hard version could potentially bring in a monstrous $76 million in annual sales. Monster Energy currently enjoys approximately 34 percent of the $31.9 billion US energy drink market, and the company retains 41 percent share across all product lines in the energy category in measured channels, according to Nielsen data published one year ago.

“We think the success of new entrants suggests an opportunity for Monster given its strong track record of innovation, including, importantly, expanding usage occasions with new products,” said Stifel Financial analyst Mark Astrachan.

Coca-Cola owns a 19.4 percent stake in Monster

The energy drink maker was originally founded as Hansen’s, a California-based company that sold juices and sodas. In 2012 it rebranded itself as the Monster Beverage Corp., and in 2015 it sold all of its non-energy drinks to The Coca-Cola Company (NYSE: KO).

Monster was previously bound by a non-compete agreement with Coca-Cola, which prohibited them from releasing anything other than energy drinks. However, that agreement ended in 2020, opening up the possibility for one monster opportunity.

International Potential for Monster Hard Seltzer

The Coca-Cola Company still owns a minority share in Monster, although the two may soon be competitors in the hard seltzer arena. Coca-Cola already released its new Topo Chico Hard Seltzer to much acclaim in select Latin American and European markets. US Markets are slated to follow in the first half of next year, and it is already one of the most anticipated releases of 2021.

Monster is now distributed in 139 countries and territories, with one or more of the company’s energy drinks being distributed in a total of 153 countries and territories, according to the Monster Beverage Corp investor presentation published in January, 2020.

Source: Monster Beverage Corp Investor Presentation

Given its brand strength in Europe, and distribution network of Coca-Cola bottlers, an international-first launch strategy similar to that of Topo Chico could make sense for Monster.

US Distribution of Hard Seltzer

The energy brand will likely need a partner within the alcohol industry to help them navigate the US’s overly-complicated, three-tiered liquor distribution system. Coca-Cola announced a partnership with Molson Coors in order to distribute Topo Chico Hard Seltzer; perhaps the partnership will extend to Monster as well, given the relationship between the two soft drink companies.

Monster isn’t the only energy drink switching gears; Bang Energy Drink announced the impending release of its own MIXX Hard Seltzer. The five percent ABV seltzer will soon be available in four flavors: Frosé Rosé, Piña Colada, Purple Kiddles, and Strawberry Blast.

Erin Grafton
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